In 2008, the financial crisis had a severe impact on Iceland. Several of the country's private banks could not refinance their short-term debt, and this led to these institutions being rated as risky. As a result, there was _____ the Icelandic krona.

Question

Quizplus · Accepted Answer

Due to the financial crisis and the risk associated with Icelandic banks, investors lost confidence in the country's economy. This led to a decrease in demand for the Icelandic krona, resulting in a depreciation of its value.

In 2008, the Financial Crisis Had a Severe Impact on Iceland